Analysis
Bitcoin extends recovery: Can it reclaim $27k?
Bitcoin was bullish post August’s CPI data. But the mid-range level near $27k remains a crucial roadblock to further upside in the short-term.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- 97% of interest rate traders leaned towards a Fed rate pause in September.
- Lower and higher timeframe market structures were bullish at press time.
Bitcoin [BTC] closed on 13 and 14 September in green after the US CPI (Consumer Price Index) data for August indicated a moderate consumer price increase.
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The data cemented a likely Fed rate pause at the 20 September FOMC Meeting, as 97% of Interest rate traders were inclined towards maintaining the current 5.25% – 5.50% target range.
Can Bitcoin reclaim $27k?
Source: BTC/USDT on TradingView
The expectation of a likely Fed rate pause in September tipped BTC to mount above the previous high of $26.4k on the H4 chart, effectively flipping the market structure to bullish.
In addition, price action was above H4 50-EMA (Exponential Moving Average) of $26.48k at press time. Despite the retracement at the time of writing, BTC could target the mid-range level near $27k or range-high.
But sellers could take advantage of a price rejection at the mid-range or drop below $26.48k and the H4 50-EMA. If so, the weakening could extend a reversal to the range-low again near $25.8k.
Meanwhile, the RSI faced rejection at the overbought area but was still in the upper range, indicating that buying pressure eased slightly.
On the other hand, the CMF crossed zero, underscoring improved capital inflows in the past few hours before press time.
Demand for Bitcoin improved, but…
Source: Coinalyze
The Open Interest rates surged from $7.5 billion on 11 September to >$8 billion at press time (afternoon Asian trading session on 15 September). It shows demand for BTC increased over the same period.
How much are 1,10,100 BTCs worth today?
But the CVD (Cumulative Volume Delta) Spot improved only from 13 September, indicating that’s when bulls gain market leverage.
Nevertheless, the funding rate fluctuations seen from 14 September could curtail further substantial upside into the weekend. So, a reversal near the mid-range couldn’t be overruled.
